Meeting ASIC RG 97 Fees and Costs Disclosure requirements

AIST has been actively involved in initiatives supporting super fund implementation of RG 97 requirements and provides this for the information of AIST member funds.

ASIC’s Regulatory Guide 97 Disclosing Fees and Costs in PDSs and Periodic Statements describes how fees and costs should be disclosed in Product Disclosure Statements (PDSs) and periodic statements. 

Following an extensive review, final changes were made to RG 97 in September 2020.  For PDSs, the new requirements can apply now on a voluntary basis and must apply to PDSs given on or after 30 September 2022.  For periodic and exit statements, the new requirements will apply to periodic statements for a reporting period that commences on or after 1 July 2021.

AIST was a leading participant in the RG 97 Industry Working Group and preparation of previous industry guidance.

However, the RG 97 Industry Working Group will not be issuing a revised Industry Working Group Guidance document as the revised RG 97 is clearer than the previous RG 97.

The RG 97 Industry Working Group has now produced Q&As to assist product providers implementing the revised RG 97 and accompanying instruments in relation to topics that still require some interpretation.

These Q&As cover:

• Guidance on determining whether updated information in a PDS is materially adverse
• Application of costs met from reserves
• Changes that have been made in relation to superannuation platforms, IDPSs and IDPS-like schemes (Platforms)
• Applying the ‘Assets Test’ to interposed vehicles

However, as AIST has not undertaken due diligence of the Q&As or subjected them to legal review, they are provided for information only at this stage.  Funds should undertake their own investigation of the accuracy and applicability of the Q&As to their circumstances.

Previous industry guidance supported by the Australian Institute of Superannuation Trustees (AIST), the Association of Superannuation Funds of Australia (ASFA), and the Financial Services Council (FSC) in 2017 can still be used by product providers until they opt-in to the new Regulatory Guide 97 regime.  The Guidance document will no longer be relevant for a provider after it moves to the new RG 97 regime.

The Industry Working Group Guidance document produced in 2017 can still be used by product providers until they opt-in to the new Regulatory Guide 97 regime. The Guidance document will no longer be relevant for a provider after it moves to the new RG 97 regime.